U.S. stock futures moved higher Friday, Nov. 13, after new data showed that wholesale prices rose less than expected in October on a monthly basis. The report offered some relief on near-term inflation, but the annual increase remained elevated and continued to shape expectations for the Federal Reserve’s interest-rate decisions.
Futures tied to the Dow Jones Industrial Average were up 226 points, or 0.4%, in morning trading. S&P 500 futures also gained 0.4%, while Nasdaq-100 futures rose 0.1%. Those figures describe expected opening levels, not the indexes’ closing performance.
Producer prices rise more than 6% from a year earlier
The Labor Department’s producer price index, or PPI, increased 0.3% in October from the prior month. The PPI measures prices received by producers and is commonly watched as an indicator of inflationary pressure before some costs reach consumers.
Economists surveyed by Dow Jones had expected the headline index to rise 0.4% for the month. On a 12-month basis, however, producer prices climbed 6.5%. CNBC reported that was the largest annual increase since November 2022.
| Measure | October result | Comparison |
|---|---|---|
| Monthly PPI increase | 0.3% | Dow Jones economists expected 0.4% |
| Annual PPI increase | 6.5% | Largest advance since November 2022 |
| Dow futures | Up 226 points | Up 0.4% in morning trading |
The futures market initially rose more sharply after the report, then gave back part of its gain. The inflation figures were still viewed as insufficient to clearly change the interest-rate outlook. Chris Zaccarelli, chief investment officer at Northlight Asset Management, said the data showed some improvement but remained too high.
“Today's PPI data — which shows some signs of improving, albeit still too-high — is unlikely to change the Fed's approach in December because the CPI data was already outside their comfort zone,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
Zaccarelli said Northlight expects the Fed to raise rates by 25 basis points in December. A basis point equals one-hundredth of a percentage point. He also described January as a “live meeting,” meaning he sees the possibility that policymakers could take action at that meeting. His comments are an assessment from the investment firm, not a Federal Reserve decision.
Nvidia rebounds after leadership change
Nvidia shares rose more than 2% in premarket trading, partially reversing a decline of more than 4% in the previous session. The move followed the departure of founder and CEO Jensen Huang, whose exit had weighed on the chipmaker and broader technology shares.
Nvidia’s chief financial officer, Colette Kress, is serving as interim CEO. The company’s board is searching both inside and outside the company for a permanent replacement, according to CNBC. The leadership change added another source of uncertainty for technology investors as markets assessed the outlook for companies tied to artificial-intelligence spending.
- Wholesale prices: The PPI rose 0.3% in October and 6.5% from a year earlier.
- Rate outlook: Northlight Asset Management’s Chris Zaccarelli said he expects a 25-basis-point Fed increase in December.
- Market opening: Dow, S&P 500 and Nasdaq-100 futures were higher in Friday morning trading.
Interest-rate expectations matter beyond the stock market. Federal Reserve decisions influence borrowing costs across consumer loans and can affect the returns available on savings products. The PPI report therefore provided a fresh data point for markets evaluating whether inflation is cooling quickly enough to alter the Fed’s approach.
